Business Breakdowns
· Parsa Kiai, Matt Reustle
[00:00:00] S1: The whole history and our involvement in the company has been a fascinating learning experience. But the biggest takeaways and what we've learned from it is finding overlooked and not well understood businesses that are actually mission critical to large, entrenched, and growing customers with a cost that is minuscule compared to the ROI that the customer has on their core product. Like selling a $12 premium metal card to Chase and American Express, that is an incredibly powerful tool. And you've had a bunch of businesses on the podcast in the past, whether it's a company like Transdigm that will sell a proprietary $200 widget that goes on a $100 million Boeing, or industrial gas businesses like Air Products that provide a small key input into a multibillion dollar refinery or chemical plant. Finding these businesses in which you are mission critical, you are exceptionally high value, low cost and entrenched—they're fascinating businesses. And then on the CompoSecure 2.0 with David Cote, and it turns into what can he do here? Watching that capital allocation unfold is going to be very interesting. [00:00:00] S0: Parsa, this has been a true pleasure. You hit on my favorite theme there at the end with those mission critical businesses and representing a small cost to the end customer. That is one that I absolutely love. So thank you very much for joining us and sharing the knowledge here. [00:00:00] S1: Absolutely. Matt, thank you very much for having me.